Procurement Best Practice in the Food Industry: Supplier Clustering as a Source of Strategic Competitive Advantage

Fearne, Andrew and Ryder, Ray
(2003)
Procurement Best Practice in the Food Industry: Supplier Clustering as a Source of Strategic Competitive Advantage.
Supply Chain Management,
8
(1).
pp. 12-16.
ISSN 1359-8546.
(doi:10.1108/13598540310463314)
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Abstract

Looks at the way in which a pizza manufacturing company, supplying both branded and own-label products to the Irish and UK retail markets, undertook a major restructuring of its procurement and manufacturing processes. Numerous sub-processing activities were having adverse effects on capability utilization and manufacturing efficiency at a time of increasing demand. Process re-engineering was required. Illustrates the approaches taken towards two projects: first, cheese supply and, second, packaging. Notes there was a steep learning curve for the management and operations staff and also resistance to change from within the firm and from some suppliers. Provides a list of critically important points learned from the experience.